Arizona silver belt. [volume] (Globe City, Pinal County, Ariz.) 1878-19??, 1887-09-03
nosHnE rAx Arses.

EntgoRs sisVra Bstf "A stis iisnc,
when the taxing of mortgages aisasol
vent debts il s. much discus sed in
privaie IL pabhe ana thraegh the
press any light which ean be thrown
on this Important suhisetmu& be wei.
come and conducive 10 4 inst and
equitable lax system, Il sesms that
.the diversity 81 opinions on tais mat
ter arises chiefly from confused aleas
about the real character ana meaning
at d mortgage, Of What constitutes Il
solvent debt, and the mutual relations
between tbo two.
A mortgage Is simply conditional
conveyance 81 property, snbiect 10 the
right 81 redemption, The condition bes
ing, thar il the nortgagef pays to Tie
mortgagee d fixed sum al d stipulated
time, then that conveyance shall be
goid lfon the ether hand The debt
lor which the mortgage was giyen, d
a pledge, Is not paid, II clothes the
creditor with lhe authority to have the
pledge sold, and to reimburse himself
For his debt, interest and expenses
Solvent debts are, rs UNDER
stand II, debts which the debtor has
visible meaus to discharge. TO say
solvent debts secured by mortgage Il
paradU3ical inaanaeh as all debts se-
cured BY mortgage are solvent per se.
In the Eortner code of laws, tbe distine-
tion N plainly made between solsent
debts and debts secured by mortgage.
For the purpose of defining equita
be and uniform taxation, especially
when the system a taxing objects Isl
in use ~ stg'e, il Is necessary % al.
vide Gle character Of mortgages ID
their bearing 10 tasahon, into TIVE
eategories. Either, the morigage isI
The security fol- pledge to pay for a
purchased property, il lien of cash
value 81 value ID trade; in that case
The debtor alone has on bis hgnds d
taxabls property, while no otheFyaiue
has been created hy the paper prom
ise 10 pay Aud inasmuch Is the pres
ent code provides that tae possassor
of the property whether pledged or
moi, shall hstand asses SIS property
10 its entire galae, i flio@s very
clearly t5at tho ether party the cred
itor or mortgage, has no other value
tor the lost properly, now.ia ths deb
ors hands, than laper promising
payment ID some tiuie ~ tae future.
Until them, he has nothing I'd haudfes
bis sold property Neii6sr does tbs
present code contemplate, tbat both
mortgager (the present posses or and
the mortgasee hc faaa with pram
iss on paper) shall be tas Al the.
same time epa tof she same eqaiya
lent Se.tieu 700 says plainly that
properly unaer mortgage Oh lease
sball be listed ana taxed n TIE mort
eager tlse possessor unless II be Gst-
ea by the mortgages Of lessee This
makes II optional % tbe paft ef both,
which Que is to pas taxes, bat clearly
does not ash that both shall pay
Bus mortgage may b given FOR
separate yalue received from seesud
party lfA loans money q y. and
takes B's note and ni,ortgaee op soma
of his property then We have ESQ taS.
able yalaes, namely, the property ofl
B,now mortglged to A. ana ths value
il the hands of A, now loaned 10 Z.
- that case, both, The property If r,
inorigaged, ana The money ii goods 81
a, now NJ tile shape q 4 note, seeured
by mortgage may 81 taxable Ihis
case gives us d debt. secured ay mort
gage, so Ear a relating u our tsx sys-
tenn
Ifit were not for just this distinc
ten between debt, secured by mort
gage, created ~ All independent value,
outside the mortgaged property, SUP
posed 70 81 4 loan a. in some other
shape, and i moatgags given simply
ia lseu Of cash purchase, Ire reply ot
the Attornoy-G General. that nortga-
ges are not taxlble, bat dsbss (or sol-
vent debts secured BY mortgage are,
woald be genuine ebsurdity p itself,
since, III cue abstract, a mortgage can-
rot be thought of anless Id connection
with an existing debt. II il not ny
intention to discuss the propriety Of
taxing mortgages given for separate
value received, not FOR part payment
of taxed property, and upon which
there exist q great diversity of opin-
ion bit desire q analyze, what the
revenue law m1st clearly mean wben
speaking Of mortgages and solvent
debts, cr debts secured by mortgage,
ia TIE faee ofits very 6rst midtown
principle, that nothing ia tbis act
shall be construed, to require 81 per
NIT double taxation ClmznN.